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Annual Report 2013
KPJ HEALTHCARE BERHAD
234
27.
Borrowings (continued)
Islamic Commercial Papers/Islamic Medium Term Notes (“ICP/IMTN”)
The ICP/IMTN is issued by Point Zone Sdn Bhd (“PZSB”), a special purpose vehicle incorporated to raise funds for the Group.
On 3 May 2011, the Company re nanced its existing conventional Commercial Papers/Medium Term Notes (“CP/MTN”) with the rst
issuance of Islamic Commercial Paper/Islamic Medium Term Notes (“ICP/IMTN”) up to RM500 million from RM250 million.
Salient features of the ICP/IMTN are as follows:
(1)
Total outstanding nominal value of ICPs and IMTNs (collectively known as “Notes”) shall not exceed RM500 million.
(2)
The tenure of the Facility is up to 7 years from date of the rst issuance of any Notes (3 May 2011) under the Facility.
(3)
ICP has a maturity subject to the management tenure, either 1, 2, 3, 6, 9 and 12 months and are mandatorily redeemed at nominal
value upon maturity date.
(4)
IMTN has a maturity of 1 year but not more than 7 years and on condition that the IMTN shall not mature beyond the expiry of the
tenure of the Facility. The IMTN shall be mandatorily redeemed at nominal value upon maturity date. The interest for the IMTN shall
be payable semi-annually upon maturity of IMTN.
(5)
The ICP/IMTN Facility is issued on a clean basis and shall be fully repaid at the end of the tenure of the Facility.
As at 31 December 2013, the unutilised amount of ICP/IMTN amounted to RM1.0 million (2012: RM151.0 million).
The ICP/IMTN used the Group’s investment in its associate Al-’Aqar Healthcare REIT amounting to RM234,963,962 as underlying assets
as required under the Islamic Facilities requirement.
The IMTN Facility, if utilised, will be secured by Memorandum of charge over designated account identi ed as Finance Service Reserve
Account (“FSRA”) and Corporate Guarantee Agreement issued by the Company in favour of the appointed trustee (known as “Security
Trustee”).
Notes to the
Financial Statements
For the financial year ended 31 December 2013
(continued)